Car sale conversion rates stronger for agency model, says Polestar UK CEO
However, Duncan McPhee, COO of Lookers, which uses Polestar’s agency model alongside the franchise model for other brands, said there hasn’t been a marked change at Lookers: “We’ve not seen much of a difference looking at conversion on the franchise model where customer deals with us directly compared to that of an online model. There’s not a huge difference."
He added: “But we have seen an uplift on customers taking finance online. That conversion has definitely improved but not the conversion for enquiry to sale.” The agency model, in which a car has a fixed price and a customer places an order directly with a car maker , which then provides a fixed commission to the relevant local retailer, lives and dies by customer experience, said Goodman, McPhee and the seminar’s third speaker, Tony Whitehorn, automotive consultant at Endiva, who previously worked for
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